SpiceJet Stock Falls Over 30% in 6 Months Despite ₹3,000 Crore QIP Boost

SpiceJet’s shares, which surged above ₹60 apiece in October 2024 following a successful ₹3,000 crore Qualified Institutional Placement (QIP), have since fallen over 30% in the past six months. The early optimism surrounding the airline’s financial revival has been dampened by a series of operational and market setbacks.

Flight Reductions Highlight Operational Strain

As reported by CNBC TV18, the airline has scaled back significantly in its latest summer schedule. Compared to the previous winter schedule, 57 flights have been cut. Even more telling, SpiceJet’s summer 2025 weekly schedule is down by 417 flights year-on-year, reflecting reduced capacity and persistent challenges in operations.

Despite the airline claiming 24 aircraft in active service, Planespotter.com data indicates that only 22 planes are currently flying. In January 2025, SpiceJet reported 28 aircraft in operation, with plans to unground 10 additional planes by mid-April. However, instead of expanding, the operational fleet has shrunk.

Fleet Revival Faces Delays

The airline attributes the delay in restoring grounded aircraft to global supply chain disruptions. A SpiceJet spokesperson told CNBC-TV18, “While there have been some delays due to global supply chain constraints, we are working closely with our partners to resolve these bottlenecks and accelerate the return of additional aircraft to service.”

As of now, SpiceJet has managed to revive only three planes—one Boeing 737 MAX, one Boeing 737 NG, and one Q400. Simultaneously, the airline returned five aircraft previously taken on high-cost wet leases.

“Five high-cost wet-leased aircraft have been returned. This move is in line with our strategy to optimise costs and improve the bottom line,” SpiceJet said.

Use of QIP Funds and Future Plans

SpiceJet has utilised approximately ₹2,400 crore of the ₹3,000 crore raised via QIP. Of this, ₹1,500 crore was used to clear statutory payments, vendor dues, employee salaries, and airport-related obligations. The airline had allocated ₹410 crore specifically for reviving grounded aircraft, with ₹170 crore spent during Q3 FY25.

To expedite aircraft revival, the airline has sent several MAX engines to a US-based maintenance firm, Standard Aero Inc., for servicing. SpiceJet is also coordinating with various original equipment manufacturers (OEMs) and MRO partners to bring additional aircraft back into operation.

Conclusion

SpiceJet’s efforts to stabilise operations through fresh funding have yet to yield the expected turnaround. With a shrinking fleet and flight schedule, coupled with limited progress on aircraft revival, the airline faces mounting pressure. While collaboration with MROs and OEMs is ongoing, the coming months will be critical in determining how effectively SpiceJet can navigate its challenges and restore investor confidence.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.